Indian_Real_Estate_Law (2)

139 Indian Real Estate Laws
at 6 per cent. per month. The Court may set
the bond aside, ordering B to repay the Rs.
100 with such interest as may seem just.]" 20.
Agreement void where both parties are under
mistake as to matter of fact.—Where both the
parties to an agreement are under a mistake as
to a matter of fact essential to the agreement
the agreement is void. Explanation.—An erroneous
opinion as to the value of the thing
which forms the subject-matter of the agreement,
is not to be deemed a mistake as to a
matter of fact. Illustrations (a) A agrees to sell
to B a specific cargo of goods supposed to be
on its way from England to Bombay. It turns
out that, before the day of the bargain the
ship conveying the cargo had been cast away
and the goods lost. Neither party was aware
of these facts. The agreement is void. (a) A
agrees to sell to B a specific cargo of goods
supposed to be on its way from England to
Bombay. It turns out that, before the day of
the bargain the ship conveying the cargo had
been cast away and the goods lost. Neither
party was aware of these facts. The agreement
is void." (b) A agrees to buy from B a certain
horse. It turns out that the horse was dead at
the time of the bargain, though neither party
was aware of the fact. The agreement is void.
(b) A agrees to buy from B a certain horse.
It turns out that the horse was dead at the
time of the bargain, though neither party was
aware of the fact. The agreement is void." (c)
A, being entitled to an estate for the life of
B, agrees to sell it to C, B was dead at the
time of agreement, but both parties were ignorant
of the fact. The agreement is void. (c)
A, being entitled to an estate for the life of B,
agrees to sell it to C, B was dead at the time
of agreement, but both parties were ignorant
of the fact. The agreement is void." 21. Effect
of mistakes as to law.—A contract is not voidable
because it was caused by a mistake as to
any law in force in 11 [India]; but a mistake as
to a law not in force in 1[India] has the same
effect as a mistake of fact. —A contract is not
voidable because it was caused by a mistake
as to any law in force in 1[India]; but a mistake
as to a law not in force in 1[India] has the
same effect as a mistake of fact." 12 [***] Illustration
A and B make a contract grounded
on the erroneous belief that a particular debt
is barred by the Indian Law of Limitation; the
contract is not voidable. A and B make a contract
grounded on the erroneous belief that a
particular debt is barred by the Indian Law of
Limitation; the contract is not voidable." 13
[***] 22. Contract caused by mistake of one
party as to matter of fact.—A contract is not
voidable merely because it was caused by one
of the parties to it being under a mistake as to
a matter of fact. —A contract is not voidable
merely because it was caused by one of the parties
to it being under a mistake as to a matter
of fact." 23. What consideration and objects
are lawful, and what not.—The consideration
or object of an agreement is lawful, unless—
—The consideration or object of an agreement
is lawful, unless—" it is forbidden by law; 14
or is of such a nature that, if permitted, it
would defeat the provisions of any law; or is
fraudulent; or involves or implies, injury to the
person or property of another; or the Court regards
it as immoral, or opposed to public policy.
In each of these cases, the consideration or
object of an agreement is said to be unlawful.
Every agreement of which the object or consideration
is unlawful is void. Illustrations (a) A
agrees to sell his house to B for 10,000 rupees.
Here, B’s promise to pay the sum of 10,000 rupees
is the consideration for A’s promise to sell
the house and A’s promise to sell the house is
the consideration for B’s promise to pay the
10,000 rupees. These are lawful considerations.
(a) A agrees to sell his house to B for
10,000 rupees. Here, B’s promise to pay the
sum of 10,000 rupees is the consideration for
A’s promise to sell the house and A’s promise
to sell the house is the consideration for B’s
promise to pay the 10,000 rupees. These are
lawful considerations." (b) A promises to pay
B 1,000 rupees at the end of six months, if
C, who owes that sum to B, fails to pay it. B
promises to grant time to C accordingly. Here,
the promise of each party is the consideration
for the promise of the other party, and they
are lawful considerations. (b) A promises to
pay B 1,000 rupees at the end of six months,
if C, who owes that sum to B, fails to pay it. B
promises to grant time to C accordingly. Here,
the promise of each party is the consideration
6. THE INDIAN CONTRACT ACT, 1872 6.6